Samsung Group will unload its remaining stake in Hanwha General Chemical Co. that it withheld when selling off its chemical and defense operations to Hanwha Group, a move that would bring proceeds worth 1 trillion won ($916.3 million) to back bioengineering or other new growth engines.

According to industry sources on Tuesday, Samsung C&T Corp. and Samsung SDI Co. will sell their combined 25.1 percent stake in the chemical company. Citi Global Markets Inc, its underwriter, will invite bidders for a preliminary auction on Dec. 20.

Private equity firms from home and abroad such as MBK Partners, STIC Investments, TPG Capital and Affinity Equity Partners as well as sovereign wealth funds from Canada and the Middle East are cited as potential bidders.

Hanwha General Chemical has borne the Hanwha name since 2015 when Samsung Group sold off its non-core defense and chemical units to the conglomerate. Samsung C&T and Samsung SDI held a 20.05 percent and 4.05 percent stake, respectively, in the company to help reduce the burden of Hanwha’s buyout while keeping a hold on future profits.

Samsung decided not to wait until the company’s initial public offering as the chemical company’s bottom line has improved from the boom in the petrochemical industry.

By Han Woo-ram and Kim Hyo-jin

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